| Zmonkey |
Jun 27, 2017 8:12 PM |
Quote:
Originally Posted by LRTfan
(Post 7847221)
I know several young people in Hamilton who have left to buy one of these exact units in Toronto. And others who rent here because there is no decent condos available, but have purchased these price point units in TO and rent them out. Try finding anything livable in Hamilton anymore in the 200,000's. Let alone something brand new with great amenities and in a great location. There will be high priced units here for sure. It's fantastic that for the first time in my lifetime developers see a market for average or higher priced housing in downtown Hamilton. We need dozens more buildings like this throughout the downtown.
I know many people paying $1,500 a month to rent downtown in a 'clean' building from the 70's or 80's. They are excited about the prospects of possibly buying a condo and using that same monthly payment as a mortgage, instead of throwing it away in rent every month.
The same price point can obtain you a small unit in the City Square development on Charlton. I know some people who looked, but passed on it due to the bland design, low ceilings, lack of amenities and suburban style finishes. If the city can stop acting like a small town and encourage a legit builder like Brad Lamb to pull this off it should raise the bar and start offering much more bang for the buck at these entry level price points.
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I am someone who owned in a new, nice condo before getting married in Hamilton, but remember the numbers I gave would be for a studio on a low floor. That is rock bottom entry level pricing.
Say you have a 650 square foot place with parking. You are $325,000 plus $25,000 for Parking for a 1 bedroom.
Monthly that would cost, $1400 in a mortgage.
Maintenance fee's would be $422 (.65 cents a square foot)
Taxes around $200/month.
a 1 bedroom would carry for $2,022/month. That is not cheap, for a lot of young people who may live in a condo for a handful of years they may be better of renting since that $1500 carries about $650 in expense you can't get back and no transaction costs.
This building will sell, but I really do think it will sell to investors in the GTA who find it cheap vs locals primary. Rents are increasing in Hamilton, but even in my old building you can rent a 5 year old condo for $1400/month with parking. Won't have same amenities or finishes, but for a lot of people especially in there 20's going cheap will be a priority.
And these 3 bedroom units, if bought by an investor, like Toronto will just end up being rented out to young professionals or students - since they pay by the room vs whole place. |
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